Most (74 percent) give because of "being moved at how a gift can make a difference," according to the study. Donors report feeling personally fulfilled when they engage in charitable activity. Of all the reasons for making gifts, only 31.7 percent make gifts to charity because of tax benefits.

For people who want to have a more direct impact on a person in need, private foundations are worth a consideration. There are close to 80,000 private foundations, according to the Indiana University Lilly Family School of Philanthropy.

Barbara and Stephen Miller's foundation intervenes at "crisis points," when people find themselves on the verge of becoming homeless. Something as simple as a car breaking down can cause someone to be unable to pay a utility bill. The foundation steps forward with a grant of less than $1,000. That's made a difference in the lives of 109 people the foundation has helped in two years.

A private foundation is usually funded by a family or corporation. Its primary activity is giving away money to other charities, but private foundations are able to give to individuals in need as well. The IRS publication to read is "Disaster Relief: Providing Assistance Through Charitable Organizations," at http://www.irs.gov/pub/irs-pdf/p3833.pdf.

The individuals cannot be relatives or friends. Such gifts are not permitted under self-dealing rules and trigger an excise tax. You'll want to read more on that topic in IRS Publication 557, "Tax-Exempt Status for Your Organization." Another resource is Cycle of a Private Foundation," which you can find at www.irs.gov.

Foundation Source, which happens to be located in Connecticut, is the nation's largest provider of support services for private foundations and the winner of the "Best Philanthropy Offering" at the inaugural Family Wealth Report Awards 2014. Foundation Source provides 10 reasons to consider setting up a foundation at www.foundationsource.com.

Here are a few to consider:

Get a current tax deduction in the year that you make a contribution to your foundation. However, you can make grants from the foundation to your charitable causes over time. You are required to distribute 5 percent of the assets of the foundation yearly.

Leave a lasting legacy: Foundations last beyond the donor's lifetime, as the assets of the foundation can grow due to earnings and additional gifting. As a result, your grants to your charitable causes can be far greater than the amounts you donate to your foundation.

Family involvement: Through your foundation, you can establish a tradition of charitable giving with your children and grandchildren.

For information on tax deductions, you'll want to read IRS Publication 526, "Charitable Contributions," at www.irs.gov. Gifts to charities are tax-deductible if you itemize deductions on Schedule A of your tax return (IRS Form 1040). As explained in IRS Topic 506, "Charitable Contributions," to be deductible, charitable contributions must be made to qualified organizations, never to individuals -- except that you can impact individuals directly through a private foundation. Be sure to talk to your tax adviser about how charitable deductions to foundations differ from those you might make to public charities.

Julie Jason, JD, LLM, award-winning author of "The AARP Retirement Survival Guide: How to Make Smart Financial Decisions in Good Times and Bad," and "Managing Retirement Wealth: An Expert Guide to Personal Portfolio Management in Good Times and Bad," is principal of Jackson, Grant Investment Advisers, Inc. of Stamford. Please e-mail her with questions at readers@juliejason.com or write to her c/o The Advocate, 9A Riverbend Drive South, Box 4910, Stamford, CT 06907. Copyright 2014 Julie Jason.